Estate Planning for your Pets (Pet Trusts) - Dennis B. Dahlberg
In 2007, real estate mogul Leona Helmsley left a fortune of $12 million to her Maltese, Trouble. As part of his will, Michael Jackson set aside $2 million for his pet chimp, Bubbles. And, in a move that dwarfs even those gifts, in 1992 Countess Carlotta Liebenstein left an inheritance of $80 million to her dog, Gunther III. Gunther’s fortune is said to have increased to a value of over $350 million today. It is clear that many people are incredibly concerned about their beloved pets being taken care of once the owner has passed away. Even if you don’t have millions of dollars to leave for your pet, there are steps that everyone can take that will ensure that their pet continues living the good life.
To many Americans today, we think of our pets as family members that we hold a responsibility in caring for as if they were more than just companion animals, to that extent any people consider them as if they were legally recognized as actual members of our families. Approximately 44% of all households in the United States have a dog, and 35% have a cat. Thus it is estimated that 78 million dogs and 85.8 million cats are owned in the United States. Additionally, millions of Americans own horses, birds, reptiles, fish and other animals.
One of the eventualities we must all plan for in life is how we want our estate to be handled upon our death and, to that end, for those of us who view our pets as members of our family, how do we continue their care in the same manner that they enjoyed during our lifetimes. One way that we can do this is through our estate plan by establishing a pet trust.
Most states today, per the Uniform Trust Code, have some provision that permits an individual to plan for the care of his or her pets after he or she passes. In Ohio, under Ohio Revised Code 5804.08: Trust to provide for care of animal, an individual can plan for the care of their pets upon their passing through their estate plan.
If you do not establish a contingency plan for your pets upon your passing, it is likely that your animals will be treated as pieces of property that your beneficiaries will either argue over, sell, or give away. So, it is important to provide for your pets upon your passing if you want an uninterrupted continuity of care for them.
A pet trust will allow for you to choose someone to take care of your pet when you are no longer able to do so, and you can also name an alternate person if your first choice is unable to serve or should decline to do so. You will be providing for caretaking instructions for your pet (i.e. food, grooming, veterinary care, etc.), as well as provide for burial instructions upon your pet’s passing. You will also establish an amount of money from your estate to be set aside as funds to be used for your pet’s care. You should try to estimate what a reasonable amount might be for your pet’s care based on the type of pet, age and condition. You should keep in mind that if the funds you set aside are unreasonably high, your beneficiaries might challenge this amount in court, wherein a judge could possibly reduce the amount. The other concern you will need to consider is what to do with any remaining funds once your pet passes – give what remains to other beneficiaries, donate to charity, etc.
An alternative to the above would be to add a specific bequest to your Last Will & Testament as to whom you are giving your pet upon your death, with a letter of instruction to the same. Although much more than just property to their owners, pets under the law are considered just that. So, by utilizing a specific bequest, you can help your pet find a good home at the time of your passing.
We would appreciate the opportunity to discuss your estate planning needs for you, and your pets, and help you to provide you with some peace of mind for the future. Please feel free to contact one of our attorneys for a free consultation.